Writing a sustainability report

Embarking on sustainability reporting can seem daunting but a structured approach can simplify the reporting process. Companies are encouraged to adopt a sustainability reporting structure that is aligned with their selected sustainability framework.

Read more about SGX practice note 7.6 here.

The following steps will provide guidance on considerations when selecting a sustainability reporting framework and the process to define the scope of your report.

(i) Conduct internal assessment and landscape study to identify an appropriate sustainability framework

Selecting a sustainability framework that best suits your business needs is crucial. Businesses may also choose to adopt multiple frameworks to enhance their sustainability reporting. Some key considerations for selecting a framework include:

(ii) Reporting Scope

After selecting a suitable reporting framework, it is important to define the scope of your business that will be covered in the sustainability report. Each framework may provide its own guidance on determining the reporting scope and boundary. Consequently, the reporting scope may vary based on criteria such as financial and operational boundaries, as well as the level of control and influence that the business has.

In sustainability reporting, materiality refers to the process of identifying and prioritising the most significant environmental, social and governance (ESG) issues that could impact an organisation and its stakeholders.

(i) Conduct a materiality assessment
Businesses can follow the steps below to get started on this process:

(ii) Identify sustainability metrics most relevant for your business

Based on the chosen reporting framework and the final list of material topics, you can identify the relevant sustainability metrics for your report. The table below provides examples of common material topics and their corresponding metrics.

(i) Identify key personnel who will be essential in the success of data collection

• Identify key personnel internally to manage, collect and consolidate the relevant data for the reporting process
• Actively engage employees by holding workshops or training sessions to clarify roles, responsibilities and necessary skills for effective ESG data management

(ii) Gather baseline data on the identified sustainability metrics to understand your current performance

This involves:

• Setting up data collection processes: Adopt systems to collect accurate and consistent data. It is important to consider utilising software tools or easily accessible Excel data templates to streamline the data management process.
• Documenting data sources: When compiling the ESG data into one centralised location, it is important to track the details of the data sources and calculation methodologies to ensure transparency and verifiability.

(iii) Set targets 

Based on the collected baseline data, set realistic and measurable sustainability goals and targets. These should align with your business strategy and address the key areas identified in your materiality assessment. In particular, utilise insights from industry leaders and peers, mandatory targets imposed for your industry (if any), as well as national / sectoral benchmarks or goals by national agencies or industry associations, to establish realistic targets for your business.

• Check industry leaders: You can start by identifying relevant industry leaders and peers, before analysing the targets that they have set for emissions reduction. You can consider using similar indexes tracked by industry leaders and peers for your own measurement and target-setting process.
• Check national and sector benchmarks: Align your business goals with any industry-specific or national goals to support broader efforts.

In line with your goals and targets, businesses should also set complementary policies and procedures to ensure that operational processes are in place to meet these commitments.

Greenwashing is defined as the use of advertising and public messaging to make businesses appear more climate friendly and environmentally sustainable than they really are. It is also a technique used by certain businesses to distract consumers from the fact that their business model and activities do a lot of environmental harm.¹

To uphold the integrity of your sustainability report and maintain stakeholder trust, it is important to steer clear of greenwashing. This can be achieved by:

• Setting clear objectives: Define precise, actionable, and quantifiable sustainability targets that reflect your genuine commitment to environmental and social responsibility.
• Ensuring transparent reporting: Regularly communicate with stakeholders, providing transparent updates that include verifiable data and clear evidence of your progress and accomplishments in sustainability.
• Conducting independent external assurance: Engage an independent professional body to provide external assurance which will increase stakeholder confidence in the accuracy and reliability of the sustainability information disclosed.

Businesses can utilise multiple communication platforms to effectively circulate their sustainability reports, such as having a dedicated microsite, existing company websites or via social media. Additionally, email newsletters, press releases and interactive webinars can further increase engagement with stakeholders, keeping them informed and involved.

For businesses interested in financial support, you can apply to government grants, including the Sustainability Reporting Grant (SRG) and SME Sustainability Reporting Programme (SME SRP). Businesses can visit the grants and programmes page to find out more details.

For businesses seeking technical resources, you can visit the NetZeroHub.SG – launched by the Singapore Business Federation (SBF) – which provides a directory of solution providers (e.g., digital carbon accounting calculators or sustainability reporting platforms).

You can also visit Gprnt (Greenprint), launched by MAS, to simplify and automate sustainability reporting for all businesses. Visit the Gprnt Platform to get started on a basic sustainability report for free.

[1] ClientEarth, "What is Greenwashing"